Settlements agreements are often used to resolve disputes between parties. They are legally binding documents that set out the terms of the agreement and are enforceable in court. However, it is important to note that not all claims can be waived by a settlement agreement. This is because some claims are so fundamental that they cannot be waived by a contract.
In a recent decision, the High Court of England and Wales held that certain claims could not be waived by a settlement agreement. This decision shows that future claims of which the parties are unaware at the date of a settlement agreement will not be waived validly by settlement agreements. This is in contrast with COT3 agreements, where such claims may be validly waived, as long as the wording is sufficiently specific and unambiguous.
The decision in question involved a dispute between a company and its former employee. The employee had entered into a settlement agreement with the company, waiving all claims against the company. However, the employee later brought a claim against the company for breach of contract. The company argued that the claim had been waived by the settlement agreement.
The court held that the employee’s claim could not be waived by the settlement agreement. The court found that the employee’s claim was based on a fundamental breach of contract, which could not be waived by a contract. The court noted that the employee’s claim was based on a breach of a fundamental term of the contract, which was not known to the parties at the time of the settlement agreement.
This decision shows that future claims of which the parties are unaware at the date of a settlement agreement will not be waived validly by settlement agreements. This is in contrast with COT3 agreements, where such claims may be validly waived, as long as the wording is sufficiently specific and unambiguous.
It is important to note that this decision does not mean that all claims cannot be waived by a settlement agreement. It simply means that certain claims, such as those based on fundamental breaches of contract, cannot be waived. It is therefore important for parties to be aware of the potential limitations of settlement agreements when entering into them.
In conclusion, it is important to note that not all claims can be waived by a settlement agreement. This decision shows that future claims of which the parties are unaware at the date of a settlement agreement will not be waived validly by settlement agreements. This is in contrast with COT3 agreements, where such claims may be validly waived, as long as the wording is sufficiently specific and unambiguous. Parties should therefore be aware of the potential limitations of settlement agreements when entering into them.
